Risk Analysis: OLD (SES) LIMITED (00452636)

1. Risk Rating: HIGH

Justification: The company is dissolved, eliminating any ongoing investment viability. Prior to dissolution, the financial trajectory showed a catastrophic decline in liquidity, with cash reserves deteriorating from £260,831 to £155 over a three-year period, while liabilities nearly tripled. The company was effectively insolvent on a cash basis in its final filed period.

2. Key Concerns

i) Severe Liquidity Collapse The cash position deteriorated dramatically from £260,831 (2011) to £71,750 (2012) to £482 (2013) to £155 (2014). This represents a near-total exhaustion of cash reserves. With current liabilities of £923,162 and virtually no cash, the company would have been unable to meet obligations as they fell due without relying entirely on debtor collections or asset disposals.

ii) Rapid Liability Accumulation Total liabilities escalated from £102,201 (2011) to £1,031,562 (2014) — a tenfold increase in three years. Current liabilities alone jumped from £529,260 to £923,162 between 2013 and 2014. The long-term creditors also increased from £39,000 to £108,400, suggesting the company was financing operations through debt it could not service.

iii) Erosion of Shareholder Value Net assets declined consistently: £742,727 → £685,666 → £583,758. The P&L reserve fell from £678,265 to £576,357, indicating cumulative losses of approximately £102,000 in the final year alone. This sustained erosion suggests operational unprofitability rather than a one-off impairment.

3. Positive Indicators

• Asset Base: The company maintained substantial tangible fixed assets (£298,297 NBV) and a positive net asset position (£583,758) at the last filing date, suggesting underlying value existed that could potentially have been realised.

• Historical Longevity: Incorporated in 1948, the company operated for over 65 years, indicating a long-established trading history and business model that had previously proven sustainable.

• No Reported Disqualifications: Available records do not indicate any director disqualification orders against the officers, which is a basic governance positive.

4. Due Diligence Notes

• Dissolution Circumstances: The dissolution date shown (2026-07-29) appears inconsistent with the company's status as "Dissolved." Clarify whether this is a voluntary strike-off, compulsory dissolution, or administrative error. Determine whether creditors were properly notified and whether any recovery actions were initiated.

• Debtor Quality: With £1,111,532 in debtors (representing approximately 85% of current assets) and only £155 cash, the company was almost entirely dependent on debtor collections. Investigate whether these debtors were collectable, whether any provisions for bad debts existed, and whether related-party balances were included.

• Related Party Transactions: The shift from P.F. Dixon (who signed the 2014 accounts) to Priscilla Travis as the current listed officer, combined with the name change from BAKER BLOWER ENGINEERING CO. LIMITED to OLD (SES) LIMITED in November 2015, suggests a potential restructuring or transfer of business. Investigate whether assets or trade were transferred to a connected entity prior to dissolution.

• Creditor Position: The dramatic increase in creditors demands investigation — determine whether this represents trade creditors, HMRC liabilities, or director loans. The presence of provisions for liabilities (£26,200 in 2013, nil in 2014) also warrants examination.

• Accounts Filing Gap: The last filed accounts cover the period ending 31 May 2014. No subsequent accounts appear on the record despite the company continuing for some period thereafter. Determine whether filing obligations were met in the final years.